The Duration of a 3-Month Treasury Futures Contract Is 4

question 13

Multiple Choice

The duration of a 3-month Treasury futures contract is 4.36 years. What is the duration of the underlying Treasury note?

• A) 3.98 years
• B) 4.11 years
• C) 4.23 years
• D) 4.36 years
• E) 4.48 years

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Definitions:

Tundra

Biome characterized by permanently frozen subsoil found between the ice cap and the tree line.

Prairie

A type of ecosystem characterized by vast open landscapes, grasslands, and few trees, often found in North America.

Biomes

Large naturally occurring communities of flora and fauna occupying a major habitat, such as forests or deserts.

Climate

The long-term patterns and averages of temperature, humidity, wind, etc., in a particular region, influencing its ecosystem and weather.